MORTGAGE BROKER MIDLAND

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• What Is A Mortgage?

A mortgage is a loan agreement between a borrower and a lender, designed specifically to help you purchase a property. The property itself serves as collateral, meaning the lender can repossess it if the borrower fails to make repayments.

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In such cases, the property is sold, and the proceeds cover the outstanding loan amount and any accrued interest. Mortgages come with set terms, a principal amount, negotiated interest rates, and predetermined repayment schedules. At Turkin Mortgage Midland, we ensure the mortgage process is straightforward and stress-free, guiding you every step of the way.

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• What Is the Difference Between an Open and a Closed Mortgage?

When choosing a mortgage plan, deciding between a closed or open repayment option is crucial. Each has its pros and cons, and making the right choice can save you significant money. Here’s how they differ:

Open Mortgage

An open mortgage gives you flexibility, allowing you to pay off the mortgage early without penalties. However, this freedom comes with higher interest rates. Open mortgage terms are typically shorter, ranging from 6 to 12 months for fixed rates and 1 to 5 years for variable rates.

Closed Mortgage

A closed mortgage has restrictions on how much extra you can repay early, and penalties apply for exceeding those limits. However, this option offers lower interest rates, making it a cost-effective choice for many borrowers.

At Turkin Mortgage, we’ll help you navigate these options, ensuring you select the repayment plan that aligns with your financial goals.

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• What Are the Advantages of Getting Mortgage Pre-Approval?

Mortgage pre-approval is an essential first step in the mortgage process. It calculates the size of the mortgage you qualify for and locks in your interest rate for 60 to 120 days.

Benefits of Pre-Approval

• Save time by focusing only on properties within your budget.
• Strengthen your negotiating position with sellers by proving your financing is pre-approved.
• Gain a clear understanding of your financial limits, making it easier to budget effectively.

With Turkin Mortgage Midland, pre-approval is quick and straightforward, giving you a head start in finding your dream home.

• Should I Opt for Fixed or Variable Interest Rates?

Choosing between fixed and variable interest rates depends on your personal financial circumstances and risk tolerance.

Fixed Interest Rates

Fixed interest rates remain unchanged for the entire term of your mortgage, providing predictability in your monthly payments. This stability makes budgeting easier, even if fixed rates are typically higher than variable rates over the long term.

Variable Interest Rates

Variable rates fluctuate with the prime interest rate, offering potentially lower costs over time. However, they come with less predictability, which may not suit everyone.

At Turkin Mortgage, we’ll explain how each option impacts your payments, helping you make an informed decision tailored to your needs.

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• How Much Will I Need For The Down Payment On The Mortgage?

A down payment is the portion of the home’s purchase price you contribute upfront. In Canada, the minimum down payment varies based on the property’s value:

• 5% for homes under $500,000.
• For homes over $500,000, 10% is required on the portion above $500,000.

If your down payment is less than 20%, you’ll need mortgage default insurance, which protects the lender in case of non-payment. At Turkin Mortgage Midland, we help you understand your options and maximize your buying power.

• What Are Closing Costs?

Closing costs are the additional expenses associated with purchasing a home, typically ranging from 2% to 4% of the property’s price. These costs may include:

• Land Transfer Taxes
• Property Appraisal Fees – To confirm the property’s value.
• Legal Fees – For handling the paperwork and title transfer.
• Home Inspection Fees – To ensure the property is structurally sound.
• Property Insurance – To protect your investment.

At Turkin Mortgage, we provide a clear breakdown of closing costs, ensuring you’re fully prepared for every step of the mortgage process.

• Understanding The Terms Associated With Mortgages

• Amortization: The total time it takes to repay your mortgage through regular payments.
• Appraisal: A formal assessment of the property’s market value.
• Down Payment: The portion of the purchase price paid upfront by the buyer.
• Home Equity: The difference between your home’s market value and the outstanding mortgage balance.
• Mortgage Default Insurance: Insurance required for down payments under 20%, protecting lenders against defaults.
• Term: The duration of your current mortgage agreement, typically shorter than the amortization period.

At Turkin Mortgage Midland, we ensure you’re fully informed about these terms, empowering you to make confident decisions throughout your journey.